Norstad Company

Howard Lim

Date of Publication

2003

Document Type

Oral Comprehensive Exam

Degree Name

Master of Business Administration

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Abstract/Summary

This Strategic management paper is for Norstad Company, the author's sister-in-law's company. This paper ultimately attempts to provide the company with a strategic plan through the recommendation of competitive strategies that, on the basis of various frameworks used, will allow the company to compete both in local and foreign market. The paper begins with an analysis of the external environment.

In addressing the market needs, the company is under the Manufacturing industry where print service is categorized. The general need being addressed is manufacturing of print labels.

Through the use of Porter's Five Forces Model, the paper provides an analysis of the company's task environment by examining the competitive forces affecting the manufacturing industry. As mentioned and discussed in this term paper, this industry is currently characterized by high bargaining power of customers, low bargaining power of suppliers, low threat to entry with high barriers to entry, low substitutes products and high intensity of rivalry.

This paper further attempts to determine changes in the external environment, through an analysis using the six segments that comprises the macro environment, which provide the basis for the threats and opportunities to the industry.

This paper also listed the following opportunities: Population Growth, Infrastracture development especially in telecom and internet related developmet), IT development, Avail of new technology in print manufacturing, Convention centres & Foreign Direct investment, Internet and e-commerce availability & development.

On the other hand, the following threats are as follows: Slow economic growth due to political instability, implementation of the additional 2% on EVAT, inflation, substitute products, high cost of raw materials & gov't Support of SME's.

In attempting to determine the various strategic groups existing within the industry, the Author identified specialization and geographical scope as the two most important strategic dimensions that influence players in formulating their strategies with-in the industry. The strategic map shows that the industry players may be categorized in five strategic groups in terms of the specialization and geographic scope. The strategic map shows the degree of specialization from general printing services to highly specialize printing services.

An internal analysis of the company was likewise performed. Using financial analysis, the company has so far able to attain stable financial standing. Using the Value Chain Activities, under the Primary Activities, Human resource activities need to be improved. A proposal to set up an HRD department is being considered.

Using the value chain analysis as the bases, the company was able to identify its strengths and weakness. Strengths being able to manufacture customize high quality stickers while its weakness falls internally.

Finally, for internal analysis of the Company, the Author discussed the various personal values of the key implementers that will be relevant in the determination of strategies to be recommended in terms of its acceptability to the key implementers. The key values are conservation but supportive.

Abstract Format

html

Language

English

Format

Print

Accession Number

OCE1139

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

120, 13 unnumbered leaves ; 28 cm.

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